Fair Value Measurement

3 Months Ended

Nov. 25, 2012

Fair Value Measurement

Note 3—Fair Value Measurement

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The tables below present information as of November 25, 2012 and September 2, 2012, respectively, regarding the Company’s financial assets and financial liabilities that are measured at fair value on a recurring basis, and indicate the level within the fair value hierarchy reflecting the valuation techniques utilized to determine such fair value. As of September 2, 2012, the Company’s holdings of Level 3 financial assets and liabilities were immaterial. As of November 25, 2012, the Company did not hold any Level 3 financial assets and liabilities that are measured at fair value on a recurring basis.

November 25, 2012:	Level 1		Level 2
Money market mutual funds(1)	$	82	$	0
Investment in U.S. government and agency securities(2)		0		741
Investment in corporate notes and bonds		0		3
Investment in FDIC-insured corporate bonds		0		36
Investment in asset and mortgage-backed securities		0		7
Forward foreign exchange contracts, in asset position(3)		0		1
Forward foreign exchange contracts, in (liability) position(3)		0		(4	)
Total	$	82	$	784

September 2, 2012:	Level 1		Level 2
Money market mutual funds(1)	$	77	$	0
Investment in U.S. government and agency securities(2)		0		794
Investment in corporate notes and bonds		0		54
Investment in FDIC-insured corporate bonds		0		35
Investment in asset and mortgage-backed securities		0		8
Forward foreign exchange contracts, in asset position(3)		0		1
Forward foreign exchange contracts, in (liability) position(3)		0		(3	)
Total	$	77	$	889

⁽¹⁾  Included in cash and cash equivalents in the accompanying condensed consolidated balance sheets.

⁽²⁾ On November 25, 2012, $43 and $698 included in cash and cash equivalents and short-term investments, respectively, in the accompanying condensed consolidated balance sheets. On September 2, 2012, $12 and $782 included in cash and cash equivalents and short-term investments, respectively, in the accompanying condensed consolidated balance sheets.

⁽³⁾  The asset and the liability values are included in deferred income taxes and other current assets and other current liabilities, respectively, in the accompanying condensed consolidated balance sheets. See Note 1 for additional information on derivative instruments.

There were no financial assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the first quarter of 2013, and it was immaterial during the first quarter of 2012. There were no transfers in or out of Level 1, 2, or 3 during the first quarter of 2013 and 2012.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Financial assets measured at fair value on a nonrecurring basis include held-to-maturity investments that are carried at amortized cost and are not remeasured to fair value on a recurring basis. There were no fair value adjustments to these financial assets during the first quarter of 2013 and 2012.

Nonfinancial assets measured at fair value on a nonrecurring basis include items such as long-lived assets that are measured at fair value resulting from an impairment, if deemed necessary. There were no fair value adjustments to these nonfinancial assets and liabilities during the first quarter of 2013. In the first quarter of 2012, these adjustments were immaterial.